[6] It operates domestic and international scheduled services on 927 routes in more than 34 countries via its affiliate airlines EasyJet UK, EasyJet Switzerland, and EasyJet Europe. Pricing.In competing against legacy carriers, easyJet's main advantage is its price structure, which sees its average fares somewhere around 50% lower than those of the major carriers on short haul routes and 20% to 40% below those of most other lower cost competitors. (Jones 2007) In 1996 they replaced the leased aircraft by purchasing four second-hand aircraft. Low-cost carrier WHAT ARE YOUR RESPONSIBILITIES TOWARDS EACH OF THE STAKEHOLDERS? [24] However, in April 2006, the threat of takeover receded as FL sold its stake for 325million, securing a profit of 140m on its investment. [117], The airline had previously provided in-flight entertainment (IFE) in some aircraft, such as the ex-GB Airways fleet, using drop-down screens on some Airbus aircraft; by 2018, all use of IFE had been discontinued. 4.2.2 BIBLIOGRAPHY EasyJet UK staff would continue to be based in Luton. A shareholder, though, is someone who has invested in a corporation. During 2017, 'Air Time' was introduced on some EasyJet Switzerland flights, which enables passengers to connect to watch a selection of films and read books through an on-board WiFi network; this service is provided by Rakuten. [93] Citing diminishing demand on the route, EasyJet ceased all flights to Moscow in March 2016. [40], In April 2020, EasyJet became involved in a dispute with its owner and largest shareholder, Stelios Haji-Ioannou. Severe disruption hits airline, with a major factor being its reliance on capacity-constrained airports such as Gatwick . [103], On 20 November 2018 EasyJet ordered an additional 17 A320neo, taking their total neo order, including the A321neo, to 147. Good Essays. Start a SWOT and Porter's 5 Forces Analysis for the company; Make a list of the issues/problems you face. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. How does EasyJet contribute to the UK economy? 3.1 Price 4 Management The cookie is used to store the user consent for the cookies in the category "Performance". and Strategic management These cookies will be stored in your browser only with your consent. Here is a useful summary: Easyjet stakeholders.As fare is, low buyers bargaining power is poor, threats of substitute are low as market is saturated. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. London Gatwick Airport Both airlines have adapted this model for the European market through further cost-cutting measures, such as not selling connecting flights or providing complimentary snacks on board. Early on, EasyJet operated as a paper airline, the aircraft themselves being flown and maintained under a lease. Powerful Essays. Previously EasyJet had only operated from Berlin-Schnefeld Airport and Berlin-Tegel Airport, where EasyJet had taken over some of Air Berlin's old services. [124][125], On 6 November 2010, the airline started a venture with Low Cost Travel Group, to offer flights dynamically packaged with Low Cost Travel Group's accommodation through the EasyJet Holidays website. The Haji-Ioannous have sold 76.3 million nil paid rights at 1.65, a 15 per cent discount to the closing price of the rights on Thursday, said the source. The first strategy is believed to enable EasyJet to attain the student segment of the market and the second one should help to boost brand awareness (Bader 2015). Primary or secondary. However, you may visit "Cookie Settings" to provide a controlled consent. external stakeholders are from outside of the company but, Free These cookies track visitors across websites and collect information to provide customized ads. Stansted, Southend, as well as Newcastle from the end of August due to low levels of air travel demand as a result of the COVID-19 pandemic. Airline [22] The specific color that EasyJet uses closely resembles that of the telecommunications corporation Orange and was a subject of dispute between the two companies in 2004 when easyGroup launched a mobile phone subsidiary, easyMobile. [20], In March 1998, EasyJet purchased a 40% stake in Swiss charter airline TEA Basle for three million Swiss francs. [102] The company took delivery of the first A321neo on 18 July 2018 at the Farnborough International Airshow. EasyJets mission statement: to provide our customers with safe good value point-to-point air services. INTRODUCTION vii [118], Three distinct loyalty products are offered, tailored towards business and frequent flyers. 1. Airlines which fail to comply with strict, Premium Low-cost carrier The first aircraft, an Airbus A320, was re-registered as OE-IVA. US Airways. Background 3 There is two different types of stake holders these are internal and external. Easyjet is one of the FTSE250 companies and 3rd largest airlines ranked among 10 IATA listed airlines in terms of passengers carried [Ref.11, 12, FTSE, IATA (2010)]. Nowadays aviation is a big, Premium EasyJet's biggest shareholder, the . Stakeholder There is no incentive for travel agents to book flights on the airline because it does not pay commissions, which is an industry-standard practice for low-cost carriers. Premium Competition Due to this seating arrangement, to satisfy safety requirements the airline's Airbus A319 aircraft have two pairs of overwing exits, instead of the standard one-pair configuration found on most Airbus A319 aircraft. The first "upstream" category includes everyone who must contribute to or approve the activities required to design, build, and bring the product to market. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. easyJet These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. [17], On 10 September 2021, the company claimed it had rejected a takeover bid from rival Wizz Air. Identifying all of a firms stakeholders can be a daunting task. For this task I will be looking at two organisations and will be looking at who their stakeholders are and how much influence they have and also what they want from the company. for only $11.00 $9.35/page. 1.1 History. It urged travellers to cut out the travel agent. Business Model Analysis In order to see how Easyjet performs in the three financial years from 2006 to 2008 following objectives have been set. Clarity is important so that the mission statement is understood by all relevant stakeholders of Easyjet Plc Company. BTEC Level 3 National Public Services Student Book D. Gray, T. Lilley. EasyJet the airline industry was founded in 1995 by Stelios Haji- Ioannou and from thence struggled to maintain their competitive position in the airline industry. Strategic management, EASYJET Table of Contents The woman had been asked to switch seats twice in a row, to accommodate two ultra-Orthodox Jewish men. As argued by Sharma & Starik (12) a stake holder is that which is affected by the operation of an organization entirely or can affect the organization directly. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. Several of these aircraft were based at Berlin-Tegel Airport, before its closure. The figures used were not based on emissions produced by an EasyJet aircraft or emissions produced by the airline overall as the advertisement implied, and ASA declared that the airline had broken advertising rules. 1. [48] One main difference EasyJet and Ryanair have from Southwest is they both fly a young fleet of aircraft. 1.4 Research objectives. These are Flexi Fare, EasyJet Plus and a new frequent traveller loyalty programme called Flight Club. These were flown on two routes: Luton to Glasgow and Edinburgh. A person group or organization that has interest or concern in an organization. London Gatwick Airport, despite a significant increase in passenger taxes and economic instability around the world. EasyGroup Holdings Ltd (the investment vehicle of the airline's founder, Greek-Cypriot businessman Stelios Haji-Ioannou, and his family) is the largest shareholder with a 15.269% stake (as of September 2021). This includes treating employees, customers and suppliers fairly, avoiding polluting activities and contributing positively to the lives of people in the local area. Influences the aims and objectives of Tesco as they have a large say in the company so, Premium Creating a corporate culture implementing educating programs.Stelios, Premium [22] In 2002, rival airline Go Fly was purchased for 374 million; the airline inherited three new bases from Go, at Bristol Airport, East Midlands Airport and London Stansted Airport; the acquisition of Go almost doubled the number of Boeing 737-300 aircraft in the EasyJet fleet. Airline INTRODUCTION Identify the key stakeholders of EasyJet and their strategic influence in two steps: a) Map the key stakeholders of EasyJet in terms of their power and interest using an appropriate framework. Upon launch, it employed just 70 people; the company is based at London Luton Airport, which was traditionally used only by charter flights. In September 2018, he suggested there should be a law to favour more women pilots in the industry. 1.Introduction This cost advantage is created through a combination of factors including: aircraft configuration enabling a higher number of seats per aircraft; higher load factor and aircraft utilisation driven by its point-to-point model; and. Management By September 2000 85% of total, Premium Creating brand awareness ( 10% of Easyjet revenue were spent in advertising) By clicking Accept All, you consent to the use of ALL the cookies. DALLAS - Esken, the owners of London's Southend Airport (SEN), could be put up for sale after the pandemic saw passenger numbers plummet by 90%. [21], Until October 1997, all of EasyJet's aircraft were operated by GB Airways, and subsequently by Monarch Airlines and Air Foyle, as EasyJet had not yet received its Air Operator's Certificate. The authors' study argues that the social . Easyjet PLC is a United Kingdom-based holding company engaged in providing flights and package holidays, principally in Europe. Updated: Feb 28th, 2023. Stakeholder Main Interests, Premium Low-cost carrier Profit before tax - underlying ( million) 123.1 191.3 (35.7)%. This cookie is set by GDPR Cookie Consent plugin. 725 Words; 3 Pages . The judgement that followed reprimanded the airline in April 2007 after it made comments that its aircraft created 30% less pollution per passenger than some of its rivals. Easyjet stakeholders. The other kind is more responsible where profit maximization is subject to ethical restraints, appropriate discharge of the company's social responsibility, and a balanced concern for the needs of all the stakeholders, not just the promoters. THREATS EasyJet under fire as flight chaos exposes carrier's operating model. Low-cost carrier 3.2 Product and services 6 Marketing [126], A mid-November 2019 report indicated that the company planned to relaunch the package holiday business, after the bankruptcy of former competitor Thomas Cook.[127]. [12] In 2014, the airline carried more than 65million passengers,[13] making it the second-largest budget airline in Europe by number of passengers carried, behind Ryanair. Some examples of key stakeholders are creditors directors employees government (and its agencies) owners (shareholders) suppliers unions and the community from which the business draws its resources. Marketing EasyJet Most EasyJet Topics to Write about. 3.1.2 Allowances 4 These cookies ensure basic functionalities and security features of the website, anonymously. [64] In late 2015, EasyJet started making use of artificial intelligence (AI) and big data for the purpose of improving efficiency, cutting costs, and enhancing the customer experience. BMAN72801 Lets take a closer look at, Premium This gives a load factor of 92.6%. The company offer a number of services from package holidays to car hires bookable via the easyjet.com website the 3rd most searched for airline on a global scale (Google Analytics). Letter to shareholders from the Chairman of easyJet plc. The SWOT Analysis for EasyJet Plc is presented below in a matrix followed by detailed analysis: Strengths. There are political factors like liberalization, Premium To have happy customers a firm ha sto create expectations and meet them. He threatened to call a general meeting to remove a director every three weeks unless subsequent action was taken. Aviation is a strategically important sector making a vital contribution to Europe's overall economy and employment. Stakeholder Although the main threat in terms of competition for easyJet is the low-cost Irish company named Ryanair. easyJet is one of the largest airlines in the world, with 308 aircraft, operating 927 routes across 34 countries and 153 airports. Good Essays. [22], On 5 November 2000, EasyJet was floated on the London Stock Exchange. EasyJet operates 580 routes around all of Europe and 104 between Europe and airports in northern Africa. The space saved by having smaller galleys allowed for the installation of 156 seats. Easyjet has benefits from low price just . Pressure groups and government. Britain S0263-2373 (98)00059-0 0263-2373/99 $19.00 0.00 Case Study easyJet's $500 Million Gamble DON SULL London Business School and Commentators Constantinos Markides Walter Kuemmerle Luis Cabral. [121], On 14 December 2004, EasyJet and Hotelopia, a subsidiary of First Choice Holidays, launched the co-branded EasyJetHotels accommodation booking service. Germany It is corporates, Premium First choice brand and increasing customer loyalty. folder_openmexicali east border crossing A stakeholder is a person group or organization that has interest or concern in an organization. It may have little or nothing to do with the products market price and depends on the products availability to satisfy his or her needs or requirements1 Easyjet is really focusing on this aspect because they are expanding and they are already flying to 129 destinations, Premium McDonalds PLC is one of the largest fast food chains in the world with 32000 outlets in 117 countries. [17], EasyJet has its roots in the business activity of Greek-Cypriot Stelios Haji-Ioannou, who reportedly gained an interest in the aviation business after being approached as a potential investor in Virgin Atlantic's Greek franchisee. Our strategy has three pillars: tackling our carbon emissions; stimulating carbon innovation; and going beyond carbon. Easyjet offers a reliable, on-time travel service with value-added features. Stakeholder analysis During the 2000s, the airline adopted a different approach, deciding to make accommodations for unions. Groups / individuals that are affected by and/or have an interest in the operations and objectives of the business Simple & Easy EasyJet Titles. As such any organization must strive to identify its stakeholders and their specific needs, Premium Recognising a vacant niche in the market, Stelios decided to examine the prospects for launching his airline, having secured a commitment of a 5 million ($7.7 million) loan from his father. Originally . [14], EasyJet was featured in the television series Airline, broadcast on ITV (19982007), which followed the airline's operations at London Luton and later at other bases. Southwest has an average fleet age of 11.9 years[49] whereas Ryanair's and EasyJet's average fleet ages are just a little over six years each. [95], EasyJet plc. This stability is a significant advantage for the growth of Easyjet They also offer other advantages to business passengers as for example: boarding the plane among the first, going through fast-track . Air France EasyJet Pricing Strategy: Should Low-Fare Airlines Offer Last-Minute Deals? 5. P2 M1 and D1 March 3, 2023. 3.1.5 Credit terms 5 This is a very healthy figure which might grow within the next years as a result of more and more people flying by budget airlines and positive image of Easyjet. When flights are cancelled, passengers are supposed to be reimbursed within one week. It was claimed to possess improved fuel efficiency over contemporary airliners. [10 marks] b) Explain the positioning of each stakeholder and the strategic implications for EasyJet. Stake holders are tenet to the development and performance of the organization without which the organization either cease or collapse completely. 342. EasyJet focus its value proposition to business travelers around time savings. Easyjet stakeholders Rating: 7,8/10 1987 reviews EasyJet is a low-cost British airline that was founded in 1995 and has since become one of the largest . EasyJet is offering shareholders 31 new shares for every 47 already held, at a price of 410p. These aircraft have subsequently been transferred to Berlin-Brandenburg Airport. Employees - they want to be . [9] It employs circa 13,000 people, based throughout Europe but mainly in the UK. Tesco are a one of the largest retailer stores in the world. In terms of cost leadership, easyJet takes the second position after Ryan. EasyJet shareholders put it on the red list on Thursday morning after the airline announced it had landed itself a post-pandemic war chest, with a plan to raise 1.2bn in a rights issue.This knocked a tenth off its share price on Thursday morning. Due to the research (EasyJet.com 2011) has noticed that over 600 routes across more than 30 countries have been functioned.

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